1q12 presentacion andina en - koandina.com 1q ncp.pdf · 1985 1995 & 1996 2000 2009 & 2010...

2012CORPORATE PRESENTATION2012PRESENTATION

Forward-Looking Statements

Statements made in this presentation that could relate to Andina’s futuref f l l f d l k d b d

Forward-Looking Statements

performance or financial results are forward-looking statements and are basedupon currently available data; however, actual results are subject to numerousuncertainties, many of which are beyond the control of the Company and any oneor more of which could materially impact actual performance or results. Factors thator more of which could materially impact actual performance or results. Factors thatcan cause performance to differ materially are listed in Andina’s annual report filedwith the Chilean SVS and form 20-F filed with the U.S. SEC, also available atwww.embotelladoraandina.com under “The Company-Risk Factors.”We undertake no obligation to update any of these statements. Recipients areadvised not to place undue reliance on these forward-looking statements. Thesestatements should be taken in conjunction with the additional information aboutrisk and uncertaintiesrisk and uncertainties.

2

History

Andina Andina listed onCoca-Cola System

joint venture (50/50)

New bottling facility in Chile begins operations.

Restructuring of juice business through jointAndina

becomes the Coca-Cola bottler in

Chile

Andina listed on the NYSE. Franchise

acquired in Brazil

TCCC acquires 11% of Andina

joint venture (50/50) for the water and juice business in Brazil and Chile

business through joint venture with Coca-Cola

bottlers in Chile

1946 1994 1996 2007 & 2008 2011

1995 & 1996 2000 2009 & 20101985

Franchise acquired in Argentina

NVG territories acquired in

Brazil

Significant production and

distribution capacity expansion

Controlling Shareholders

acquire 50 % of the Company

in the three franchises

3

Ownership (December 31, 2011)

Controlling Group 48.7%

Others 22 5%

55.0%Series A

42.4%Series B

Others 22.5%

Coca-Cola 11.0%

ADRs 9.2%

Chilean Pension Funds 8.5%

The Controlling Group is composed of 4 Chilean families with equal

parts, that have a shareholders’ agreement which includes TCCC.

Series A elects 6 of 7 Board members.

Series B receives an additional 10% in dividends.

4

Consolidated Overview(December 31, 2011)

REVENUES(million USD)

EBITDA(million USD)

1,271.6 1,322.9 1,404.6

1,742.0 1,715.8

2,031.1CAGR 12.4%

290.4 277.2303.7

365.1 359.3 375.9CAGR 8.6%

2007 2008 2009 2010 2010P 2011 2007 2008 2009 2010 2010P 2011

Includes Vital Jugos Does not include Vital Jugos Includes Vital Jugos Does not include Vital Jugosg g g g

489.2480.3

501.2TOTAL VOLUME(million unit cases)CAGR 3.8%

IFRS

Chile GAAP

434.4446.8

458.6

2007 2008 2009 2010 2010P 2011

5

IFRS

Includes Vital Jugos Does not include Vital Jugos

Consolidated Overview(1Q 2012)

592.4REVENUES(million USD)

EBITDA(million USD)

520.5101 3

109.4

1Q 2011 1Q 2012

101.3

1Q 2011 1Q 2012

143.8

TOTAL VOLUME(million unit cases)

130.3

1Q 2011 1Q 2012

6

Summary(December 31, 2011)

Rio de Janeiro & Espirito Santo

Extension: 90 thousand Km2

Population: 17 6 millionPopulation: 17.6 million

Total volume: 205.1 million UCs

BrazilMetropolitan Region,San Antonio & Cachapoal


Mendoza, San Juan, San Luis, Córdoba, Santa Fe & Entre Ríos

Population: 7.7 million


ChileSanta Fe & Entre Ríos


Population: 10.3 million


A tiArgentina7

Regional Diversification(December 31, 2011)

Brazil 41% Brazil 45% Brazil 43%

Chile 31%

Argentina 28%

Chile 31%

Argentina 24%

Chile 39%

Argentina 18%

EBITDA376 million USD

Total Revenues2.0 billion USD

Total Volume501 million unit cases

8

Argentina

Córdoba

Santa Fe

g

CórdobaSan Juan

MendozaS L i

Entre Ríos

San Luis

In Argentina Company has a License Agreement with The Coca-Cola Company for the sale of concentrates and beverage basis for certain Coca-Cola soft drinks and non-soft drink beverages. In accordance with the agreement we have the right to produce and distribute Coca-Cola soft drinks in our franchise, which includes: the provinces of Córdoba Mendoza San Juan San Luis and Entre Ríos as well as part of the provincesCórdoba, Mendoza, San Juan, San Luis and Entre Ríos, as well as part of the provinces of Santa Fe and Buenos Aires (only San Nicolás and Ramallo).The Bottler Agreement with The Coca-Cola Company expired in February 2012, however in April of 2011 EDASA requested the extension for another five years.

9

Argentina

Córdoba

Santa Fe

g

CórdobaSan Juan

MendozaS L i

Entre Ríos

San LuisWe operate 1 production facility located in Montecristo, Córdoba with a total of 8 lines. Average utilization capacity for the year 2011 was 59.9%.

Additionally, it operates 1 production facility for juices and other products with 1 line.

1 production facility for mineral water and other products, soon to begin operating

The company has 10 Distribution Centers for its products carried out through third party distributing companies with an average fleet of 273 trucks.

Production of soft drinks

Distribution centerProduction of juices and other products

Company employees: 1,892 as of December 31, 2011. Company clients: 44 thousand as of December 31, 2011. Production of mineral water and other products

10

11

Soft drinks 57.3%

Total 39.3%

Juices & Others 19.7%

Waters 10.5%

Soft drinks 94%

Waters 4%

Juices & Others 2%

Multi Serving 89%

Single Serving 11%

Mom & Pops 50%

Wholesales 29%

Supermarkets 18%

On Premise 3%

Non-Returnables 52%

Returnables 47%

Post Mix 1%

Format Mix – Soft Drinks

Channel Mix – Soft Drinks

Total 308

Soft drinks 288

Waters 14

Juices & Others 6

Volume Mix Per Capita Consumption (8 oz. bottles)

Market Share

Market Structure Argentina

ArgentinagBrand Portfolio

Soft drinks Juices & Others Waters

12

ArgentinaVolume Growth (MUCs)

(December 31, 2011)

g

10 51.9 3 06.7

8.7Total VolumeCGAR 4.7%

9.810.3 9.6 9.8

10.51.71.9 3.0

Diet Soft Drinks CAGR 1.7%

Regular Soft Drinks CAGR 3.5%

Juices, Waters & Others CAGR 50.4%

103.8 109.9 108.3 108.6119.1

2007 2008 2009 2010 2011

13

Argentina

Chilean GAAP IFRS

Financial Highlights (Nominal MUSD)(March 31, 2012)

g

2007 2008 2009 2009 2010 2011 1Q11 1Q12Sales Volume (MUC) 115.3 122.0 120.9 120.9 125.2 138.3 36.4 41.6

Net Sales 252.1 321.7 315.7 311.8 363.2 479.9 116.0 156.0

O ti I 26 2 34 8 42 3 41 5 46 0 53 6 13 9 17 3

Chilean GAAP IFRS

Operating Income 26.2 34.8 42.3 41.5 46.0 53.6 13.9 17.3

Operating Margin 10.4% 10.8% 13.4% 13.3% 12.7% 11.2% 12.0% 11.1%EBITDA 39.3 47.6 56.2 56.0 60.1 69.7 17.5 22.3

EBITDA Margin 15.6% 14.8% 17.8% 18.0% 16.5% 14.5% 15.1% 14.3%

Capital Expenditures 10.4 11.6 15.1 13.7 19.3 52.3 6.0 9.1

CAPEX/Depreciation (times) 0.8 0.9 1.1 0.9 1.4 3.2 1.7 1.8

FX (AR$/US$) period average 3.12 3.16 3.73 3.73 3.91 4.13 4.04 4.36FX (AR$/US$) period average 3.12 3.16 3.73 3.73 3.91 4.13 4.04 4.36

FX (AR$/US$) end of period 3.15 3.45 3.80 3.80 3.98 4.30 4.05 4.38

Revenues per unit case (US$) 2.20 2.60 2.61 2.58 2.90 3.47 3.19 3.75

EBITDA per unit case (US$) 0.34 0.39 0.46 0.46 0.48 0.50 0.48 0.54

14

Brazil

Espirito Santo

Rio de Janeiro

In Brazil the Company has a License Agreeement with TheCoca-Cola Company for thesale of concentrates and beverage basis for certain Coca-Cola soft drinks and non-soft drink beverages. In accordance with the agreement we have the right to produceand distribute Coca-Cola soft drinks in our franchise, which includes: the majority of the State of Rio de Janeiro and the totality of the State of Espírito Santo The Bottlerthe State of Rio de Janeiro, and the totality of the State of Espírito Santo.. The Bottler Agreement with The Coca-Cola Company is for a 5 year period beginning beginningOctober 4, 2007.

15

Brazil

Espirito Santo

Rio de JaneiroWe operate 2 production facilities located in Jacarepaguá in the State of Rio de Janeiro and in Vitoria in the State of Espírito Santo with a total of 13 lines. Average utilization capacity for the year 2011 was 75%.

The company has 5 Distribution Centers for its products carried out through third


b

p y p gparty distributing companies with an average fleet of 631 trucks.

As an additional service, we manage 600 vending machines.

Company employees: 2,847 as of December 31, 2011. Company clients: 68 thousand as of December 31, 2011.

Distribution center

16

BrazilMarket Structure

(Year 2011)

Soft drinks 57.4%

Total 52.1%Non-Returnables 86%

Format Mix – Soft Drinks Market Share1


Waters 9.6%

Multi Serving 74%

Single Serving 26%

Returnables 11%

Post Mix 3%

Supermarkets 28%


Total 275

Volume Mix1 Per Capita Consumption1

(8 oz. bottles)

Soft drinks 91%

Juices & Others 7%

Waters 2%

Supermarkets 28%

On Premise 26%

Wholesales 24%

Mom & Pops 22%

Total 275

Soft drinks 251

Juices & Others 18

Waters 6

17

1 Without beer

BrazilBrand Portfolio

Beer


18

BrazilVolume Growth (MUCs)

(December 31, 2011)

15 5 21 6

Total VolumeCGAR 4.2%

23.2 22.520.5

19.2 17.78.9 10.511.6

15.5 21.6

Diet Soft Drinks CAGR -6.5%



141.7 141.0 153.1 167.8 165.8

2007 2008 2009 2010 2011

19

Brazil

Chilean GAAP IFRS

Financial Highlights (MUSD)(March 31, 2012)

2007 2008 2009 2009 2010 2011 1Q11 1Q12Sales Volume (MUC) 174.7 174.0 185.3 185.3 202.5 205.1 53.7 57.2

Net Sales 543.4 582.5 615.1 606.9 799.3 921.0 245.7 254.1

Chilean GAAP IFRS

Operating Income 96.6 96.5 112.4 107.2 141.6 132.4 44.3 42.6

Operating Margin 17.8% 16.6% 18.3% 17.7% 17.7% 14.4% 18.0% 16.8%

EBITDA 116.6 118.9 130.7 128.7 168.8 165.1 52.0 51.9

EBITDA M i 21 5% 20 4% 21 3% 21 2% 21 1% 17 9% 21 2% 20 4%EBITDA Margin 21.5% 20.4% 21.3% 21.2% 21.1% 17.9% 21.2% 20.4%

Capital Expenditures 31.2 53.2 37.9 33.8 69.8 59.8 6.4 15.1

CAPEX/Depreciation (times) 1.6 2.4 2.1 1.6 2.6 1.8 0.8 1.6

FX (R$/USD) period average 1.94 1.84 2.00 2.00 1.76 1.67 1.66 1.80

FX (R$/USD) end of period 1.77 2.34 1.74 1.74 1.67 1.88 1.63 1.82

Revenues per unit case (US$) 3.11 3.35 3.32 3.28 3.95 4.49 4.58 4.44p

EBITDA per unit case (US$) 0.67 0.68 0.71 0.69 0.83 0.80 0.97 0.91

20

Chile

Región Metropolitana

Chile

San Antonio

Cachapoal

In Chile the Company has a License Agreeement with TheCoca-Cola Company for thesale of concentrates and beverage basis for certain Coca-Cola soft drinks and non-soft drink beverages. In accordance with the agreement we have the right to produceand distribute Coca-Cola soft drinks in our franchise, which includes: the MetropolitanRegion in Santiago the Province of San Antonio in the Fifth Region and the Province of

Cachapoal

Region in Santiago, the Province of San Antonio in the Fifth Region; and the Province of Cachapoal (including San Vicente de Tagua-Tagua) in the Sixth Region. The Bottler Agreement with The Coca-Cola Company is for a 5 year period beginning January 1, 2008.

21

Chile

Región Metropolitana

Chile

We operate the San Joaquín production facility with 8 bottling lines and 1 blowing line. Average utilization capacity for 2011 was 82.0%. Additionally, during the fourth quarter of 2011 2 lines began production at the new bottling facility in Renca.

The company has 6 Distribution Centers for its products carried out through the subsidiary, Transportes Andina Refrescos, and counts with a fleet of 30 owned trucks and 350 third party trucks

San Antoniotrucks and 350 third party trucks.

The company holds a 49.91% stake in Envases Central S.A. that operates one production facility located in Santiago, with 1 line for cans (350 ml, 310 ml and 250 ml) and 1 line for PET bottles (250 ml, 500 ml, 580 ml, and 1.5 lt-only for Aquarius-). During 2011, the canning and bottling lines operated at an average of 56% and 52%, respectively.

Cachapoal

The company holds a 57% stake in Vital Aguas that operates 4 production lines for mineral water and purified water at the production facility located in Chanqueahue, in the municipality of Rengo in Chile. During 2011, average utilization capacity was a 67.0%.

The company holds a 56.5% stake in Vital Jugos that operates 1 production facility located in Santiago with 7 lines for the production of Andina Frut, Andina Néctar Cachapoallocated in Santiago with 7 lines for the production of Andina Frut, Andina Néctar Nestea, Powerade, Aquarius and Hugo; and 7 lines for the production of Kapo. Average utilization capacity for the year 2011 was 73.0%.

Also, as an additional service, we manage 2,420 vending machines for soft drinks and snacks through the subsidiary, Servicios Multivending.

Company employees: 1,732 as of December 31, 2011.


Distribution centerProduction of juicesp y p y , ,

Company clients: 48 thousand as of December 31, 2011.

Vital Jugos and Vital Aguas are a joint venture with Embonor and PolarEnvases Central is a joint venture with Embonor, Polar and Coca-Cola de Chile

Production of soft drinks (cans and PET special formats)

Production of waters

22

ChileMarket Structure

(Year 2011)

Chile

Returnables 61%

Format Mix – Soft Drinks Market Share

Soft drinks 69.3%

Total 62.0%Multi Serving 82%

Single Serving 18%

Non-Returnables 35%

Post Mix 4%

Waters 39.5%


Mom & Pops 53%


Total 487

Volume Mix Per Capita Consumption (8 oz. bottles)

Soft drinks 85%

Juices & Others 9%

Waters 6%

Mom & Pops 53%

Wholesales 19%

Supermarkets 17%

On Premise 11%

Total 487

Soft drinks 418

Waters 36

Juices & Others 33

23

ChileBrand Portfolio

Chile


24

ChileVolume Growth

(December 31, 2011)

Chile

20 0 23.0

Total VolumeCGAR 3.3%

24.5 22.9 23.0 23.4 24.514.6 16.8 17.9

20.0

Diet Soft Drinks CAGR 0.0%



99.4 104.7 105.1 109.2 110.4

2007 2008 2009 2010 2011

25

Chile

Chilean GAAP IFRS

Financial Highlights(Nominal MUSD)

Chile

2007 2008 2009 2009 2010 2010P 2011 1Q11 1Q12Sales Volume (MUC) 144.4 150.8 152.4 152.4 161.5 152.6 157.8 40.1 44.9Net Sales 482.6 424.4 537.1 488.1 579.5 553.3 630.2 158.8 182.3

O ti I 114 7 91 0 109 6 96 3 112 6 109 3 116 1 25 9 28 6

Chilean GAAP IFRS

Operating Income 114.7 91.0 109.6 96.3 112.6 109.3 116.1 25.9 28.6

Operating Margin 23.8% 21.4% 20.4% 19.7% 19.4% 19.8% 18.4% 16.3% 15.7%EBITDA 139.8 115.1 138.1 126.1 143.9 138.1 148.9 33.5 38.7EBITDA Margin 29.0% 27.1% 25.7% 25.8% 24.8% 25.0% 23.6% 21.1% 21.2%g

Capital Expenditures 70.3 39.9 45.1 41.0 98.0 91.5 150.2 35.8 18.4

CAPEX/Depreciation (times) 2.8 1.7 1.6 1.4 3.1 3.2 4.6 4.7 1.8

FX (Ch$/USD) period average 522.4 522.5 559.5 559.5 510.2 510.2 483.9 479.8 485.9FX (Ch$/USD) period average 522.4 522.5 559.5 559.5 510.2 510.2 483.9 479.8 485.9

FX (Ch$/USD) end of period 496.9 636.5 507.1 507.1 468.0 468.0 519.2 479.5 487.4

Revenues per unit case (US$) 3.34 2.81 3.52 3.20 3.59 3.63 3.99 3.96 4.06EBITDA per unit case (US$) 0.97 0.76 0.91 0.83 0.89 0.90 0.94 0.84 0.86

Includes Vital Jugos Does not include Vital Jugos

26

Consolidated

Chilean GAAP IFRS

Financial Highlights(Nominal million USD)

2007 2008 2009 2009 2010 2010P 2011 1Q11 1Q12

Total Volume (MUCs) 441.3 454.6 458.6 458.6 489.2 480.3 501.2 130.3 143.8Net Sales 1,281.3 1,331.3 1,465.4 1,404.6 1,742.0 1,715.8 2,031.1 520.5 592.4

Operating Income 232.4 217.9 256.5 237.9 292.5 289.2 294.3 82.4 85.0

Operating Margin 18 1% 16 4% 17 5% 16 9% 16 8% 16 9% 14 5% 15 8% 14 4%Operating Margin 18.1% 16.4% 17.5% 16.9% 16.8% 16.9% 14.5% 15.8% 14.4%

EBITDA 291.1 277.7 317.3 303.7 365.1 359.3 375.9 101.3 109.4EBITDA Margin 22.7% 20.9% 21.7% 21.6% 21.0% 20.9% 18.5% 19.5% 18.5%

Capital Expenditures 112.7 105.4 98.1 88.4 187.1 180.6 262.3 48.2 42.6

CAPEX/Depreciation (times) 1 9 1 8 1 6 1 3 2 6 2 6 3 2 2 5 1 7CAPEX/Depreciation (times) 1.9 1.8 1.6 1.3 2.6 2.6 3.2 2.5 1.7

FX (Ch$/USD) period average 522.4 522.5 559.5 559.5 510.2 510.2 483.9 479.8 485.9

FX (Ch$/USD) end of period 496.9 636.5 507.1 507.1 468.0 468.0 519.2 479.5 487.4

Revenues per unit case (US$) 2.90 2.93 3.20 3.06 3.56 3.57 4.05 4.00 4.12

EBITDA per unit case (US$) 0.66 0.61 0.69 0.66 0.75 0.75 0.75 0.78 0.76

Includes Vital Aguas and Vital Jugos Does not include Vital JugosIncludes only Vital Jugos

27

ConsolidatedFinancial Highlights

(Nominal million CLP)

2007 2008 2009 2009 2010 2010P 2011 1Q11 1Q12

Total Volume (MUCs) 441.3 454.6 458.6 458.6 489.2 480.3 501.2 130.3 143.8

Net Sales 636,689 847,301 743,116 785,845 888,714 875,326 982,864 250,776 289,628

Chilean GAAP IFRS

Net Sales 636,689 847,301 743,116 785,845 888,714 875,326 982,864 250,776 289,628

Operating Income 115,494 138,677 130,061 133,123 149,234 147,562 142,424 39,700 41,566

Operating Margin 18.1% 16.4% 17.5% 16.9% 16.8% 16.9% 14.5% 15.8% 14.4%EBITDA 144,642 176,734 160,913 169,929 186,248 183,304 181,922 48,826 53,483

EBITDA Margin 22.7% 20.9% 21.7% 21.6% 21.0% 20.9% 18.5% 19.5% 18.5%

Capital Expenditures 56,024 67,074 49,763 49,483 95,462 92,147 126,931 23,227 20,838

CAPEX/Depreciation (times) 1.9 1.8 1.6 1.3 2.6 2.6 3.2 2.5 1.7

Revenues per unit case (CLP) 1,443 1,864 1,620 1,714 1,817 1,822 1,961 1,925 2,014

EBITDA per unit case (CLP) 328 389 351 371 381 382 363 375 372

Includes Vital Aguas and Vital Jugos Does not include Vital JugosIncludes only Vital Jugos

28

ConsolidatedBalance Sheet

(at March 31, 2012)

Net Cash Position: -82.6 million USD

29

Dividends and Market Cap

M k t CDividend Distribution

p(as of March 31, 2012)

3.42

2.99

3.87

Market Cap(billion USD)

146 150

130

151

Dividend Distribution(million USD)

2.25

1 54

2.36

110

Total dividends paid out since 2000 = US$1.4 billion

1.54

2007 2008 2009 2010 2011 2012 YTD

14

2007 2008 2009 2010 2011 2012 YTD

2007 2008 2009 2010 2011

Series A 7.3% 7.2% 6.6% 6.0% 4.6%

Series B 7.4% 7.3% 6.0% 5.4% 4.1%

Dividend Yield

30

Merger Andina – PolarMerger Andina Polar

31

The consolidation of a South American bottling powerhouseg p

Largest Coca-Coca bottlers by volume (Bn UCs)Largest Coca-Coca bottlers by volume (Bn UCs) Second largest Coke bottler in South America and third largest Coke bottler in Latin America in terms of volume 646 MUCs sold in last 12 months to December 2011 Population served: 48 million

2.6

2.1

1 3

p

Attractive geographic footprint Franchises include main cities in Latin American such as Santiago, Rio

de Janeiro, Córdoba and Asunción, among others High market shares in all of the company’s territories Significant presence in high growth countries

1.3

1.2

0.9

Geographic footprintGeographic footprint

g p g g

0.8

0.6

0.5

0.2

Andina

Polar

Source: company filingsNote: revenues and volume based on LTM 3Q11 figures, except Swire (2010) and Icecek (2011). Coca-Cola Enterprises volume based on 2010 figures

32

Increased scale across the board

Volume (MUCs)Volume (MUCs) Revenues (MUS$)Revenues (MUS$)

646

1452,563

501

145

2,031

612

77.6 %

22.4%

76.8 %

23.2%

Production plants1Production plants1Population served (million)Population served (million)

Andina Polar Combined Andina Polar Combined

10

36

48

12

4

6

10

75.0 %

25.0%

40 0 %

60.0%

Andina Polar Combined

4

Andina Polar Combined

75.0 %

1 A di 2 l t i B il d 1 l t i A ti d Chil h P l 3 l t i Chil 2 i A ti d 1 i P I dditi t thi

40.0 %

1 Andina owns 2 plants in Brazil, and 1 plant in Argentina and Chile each; Polar owns 3 plants in Chile, 2 in Argentina and 1 in Paraguay. In addition to this, Andina and Polar are parties in a JV in Chile for the production of juices, water and cans and Andina is a part of JV in Brazil for the production of juices

33

Diversified business profile

Key figuresKey figures

Chile Brazil Argentina Paraguay

48 million 641 MUCs MUS$2,563 MUS$459

30%28%

24% 15%

15% 9% 8% 10%

36%

32% 36%37%

19%31% 32% 38%

Population served Volume LTM 3Q11 Revenues LTM 3Q11 EBITDA LTM 3Q11p Q Q Q

34

Visit our Websitewww.embotelladoraandina.com

35

1q12 presentacion andina en - koandina.com 1q ncp.pdf · 1985 1995 & 1996 2000 2009 & 2010...

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